ExxonMobil restores most Guyana oil output

ExxonMobil has restored most crude production at its deepwater Stabroek block in Guyana to 100,000-111,000 b/d after output was forced down because of a recurring compression problem, the company told Argus.

The breakdown of a recently repaired and re-installed gas compressor caused the company to slash output at the Liza Destiny floating production, storage and offloading vessel (FPSO) in early April to 30,000 b/d – a quarter the unit's 120,000 b/d nameplate capacity.

ExxonMobil said last week it would progressively restore production as it worked to repair the faulty equipment within three months.

The company said today it has made a 19th oil discovery on Stabroek at the Uaru-2 well located around 6.8m (11km) south of the Uaru-1 well where it announced a 16th find in January 2020.

The Uaru-2 discovery follows rare recent setbacks to the company's offshore oil search when it hit three dry holes on the three blocks it is operating.

Uaru-2 will add to Stabroek's gross discovered recoverable resource estimate of 9bn bl oil equivalent (boe), ExxonMobil said. The firm said in March that reserves on the block may reach as high as 18bn boe.

Uaru-2 drilling -- through 5,659ft (1,725m) of water -- encountered around 120ft (36.7m) of "high-quality" oil-bearing reservoirs "including newly identified intervals below the original Uaru-1 discovery," ExxonMobil said.

Guyana welcomes the new discovery "and remains committed to the sustainable development of Guyana's oil and gas resources to ensure that the benefit from this sector transforms all traditional productive sectors to enhance the lives of all Guyanese," natural resources minister Vickram Bharrat said today.

ExxonMobil started producing 32.1°API Liza crude in December 2019, and has a 45pc stake in Stabroek. US independent Hess holds 30pc and Chinese state-owned CNOOC unit Nexen has 25pc.

By Canute James